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Old 09-29-2016, 04:44 PM   #1361
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Just as an FYI, it is almost always the CFO who does those qtrly calls... does not mean he/she is calling the shots...
It totally depends on the company, also I go by how competent I feel the executives are, anyone that listened to a Valeant Call should have realized they had no understanding of their financials, the same held true when I listened to a Citibanks call in 2007 on the off balance sheet transactions. The Wells Fargo CFO is light years ahead of the average CFO and much better than the CEO as recent testimony to Congress is proving, I think the CFO is a much bigger loss
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Old 09-29-2016, 05:15 PM   #1362
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The banking sector, including preferreds, is taking it on the chin today. Lots of big declines.

Even extremely thinly traded issues, like SIVBO, got dumped today - recovered, then dumped again.


I watched that.... I was tempted but SIVBO is in the danger zone now...Just went exD, way past call and high yielding TRUP debt. Its call risk must be respected and no dividend declaration is on horizon for a while. I dabbled buying a pre market issue of a small reit CIO... The 6.6% preferred temp ticker is CYORP. Not recommending, I just 200 for the fun of it. I found a reit preferred I liked mentioned by someone on another forum that I bought. Then I found out Coolius has owned for couple years and never told me...Thanks a lot, Coolius! . Wouldnt have mattered, I only recently have learned to trust them anyways.
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Old 09-30-2016, 09:00 AM   #1363
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The last 27 shares of my CNTHP were taken at $54.25.

In other news, I took a big bite of AHT-A. I also own the common and the D preferred. It's really too much AHT, so I may pull a Mulligan and flip some of it. Of course, if you believe in the common, then by definition, you have to believe in the preferreds.
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Old 09-30-2016, 09:09 AM   #1364
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Bought some shares of NNN-E, National Retail Properties 5.7% E series preferred. YTFC is a low 2.9%, assuming a call in May 2018.

However, this is a worst case, so I'm taking it as a 1.5 year 2.9% CD.

Strong company, diversified tenant base, and reasonable debt ratios.
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Old 09-30-2016, 12:15 PM   #1365
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The last 27 shares of my CNTHP were taken at $54.25.



In other news, I took a big bite of AHT-A. I also own the common and the D preferred. It's really too much AHT, so I may pull a Mulligan and flip some of it. Of course, if you believe in the common, then by definition, you have to believe in the preferreds.


Somebody here loves AHT. Slow you a corporate insider, ha! Good luck. They certainly have juicy dividends that are nice to receive quarterly. I finished out my UBP-F purchase today at $26.04. Have 490 shares, ten short of my 500 wanted, but that is close enough. Same strategy as last weeks 1000 shares of ARE-E purchase. Looking to flip or hold until call next year with a profit. Just playing the short term side of market with recent purchases.
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Old 10-03-2016, 01:39 PM   #1366
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I watched that.... I was tempted but SIVBO is in the danger zone now...Just went exD, way past call and high yielding TRUP debt. Its call risk must be respected and no dividend declaration is on horizon for a while.
So what happened to your feeling that replacing this with other debt/preferred stock would have had a negative net impact to their balance sheet and/or bottom line?


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I dabbled buying a pre market issue of a small reit CIO... The 6.6% preferred temp ticker is CYORP. Not recommending, I just 200 for the fun of it. I found a reit preferred I liked mentioned by someone on another forum that I bought. Then I found out Coolius has owned for couple years and never told me...Thanks a lot, Coolius! . Wouldnt have mattered, I only recently have learned to trust them anyways.
I picked up 100 CYORP at 24.90 today. Not too excited about it...but at least a 6.6% YTC isn't the end of the world. Also picked up 100 CUBI-F, a new issue. Just a 6% coupon (non-callable), but it's a qualified dividend for those holding in taxable accounts.
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Old 10-03-2016, 06:03 PM   #1367
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So what happened to your feeling that replacing this with other debt/preferred stock would have had a negative net impact to their balance sheet and/or bottom line?




I picked up 100 CYORP at 24.90 today. Not too excited about it...but at least a 6.6% YTC isn't the end of the world. Also picked up 100 CUBI-F, a new issue. Just a 6% coupon (non-callable), but it's a qualified dividend for those holding in taxable accounts.


Its just risk/reward...When I bought at $26 the 40 plus divi had already been declared... but when somebody offered me $26.60 I was out the door... After PJS clipped my wings with a call, it ticked me off. So I have been staying with buying 6% plus issues under a divi over par. Also heavily interested in issues near certain to be called next year. Ready to flip or ride until call. Looking at more capital preservation in some purchases than maximizing yield...
I wont ever initiate a new position in anything that is over a divi above par, past call, and no next dividend declared yet...Call fever is heating up!
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Old 10-07-2016, 02:17 PM   #1368
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This thread has been quiet for several days so thought I'd add a confirmation that EYMXP will be called sometime in near future. Here's an article on a new Entergy issue that mentions EYMXP:
Utility Entergy Mississippi Sells First Mortgage Baby Bonds | The Yield Hunter
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Old 10-07-2016, 03:11 PM   #1369
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Yep, RE, another 6% er gone..... I havent done anything in over a week. I largely have thrown a huge chunk of my flip money tied up into 1000 share purchases of ARE-E, UBP-F, and a lesser amount in AES-C. I may lighten my load in AES-C but not until I snag that divi next week. Im just hiding out in those former 2 as they are higher yielders and will be called next year, so there is price support there.
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Old 10-10-2016, 05:06 PM   #1370
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Well you cant get a good flipper down for long. Im down to rubbing nickels now as squeezing extra juice out is getting harder. Sold out all my ARE-E for about 35 cent gain for 2 weeks. Since it will be called in Feb most likely I took the quick profits and bought UBF-G at $26.40. It is about to kick out a nice juicy divi with its sister issue I own UBP-F here in a couple weeks. Had to sell 100 shares of AES-C also to scrap up enough money to cover additional purchases of AILLL/AILNP today. Only was given 63 shares of the former but landed a juicy 100 share lot of the latter. Its only traded about 1000 shares the past 3.5 years and I have snagged 400.... Of course there are only 4500 shares outstanding. Buying at $104 will be a swift kick in nards if its called, but so be it. To add more 7.5 % juicy ultra safe pay forever yield is worth it. I was shocked I got more, but since my brokerage was giving me an unapproved $10,400 loan, I had to sell something to pay and stay in good graces and not get my account suspended.
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Old 10-10-2016, 07:01 PM   #1371
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Well Mulligan....

I have decided to do some flipping on my own... starting to look for some issues that pay a good divi.... buy before record date, take the divi and then sell a week or so later... so far it looks like most of the ones I have looked at recover within two weeks...


I am doing it small right now, about $11K...


Got my first one a couple of weeks ago, sold it and am onto my second one right now...
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Old 10-10-2016, 07:30 PM   #1372
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Texas, for the right stocks, I think your thoughts are correct. And based on my last two transactions like you did with MNR-B and ARE-E it works pretty smoothly with issues that will be called. Get them with a little meat on the bone and right price you are protected on your back side if the appreciation would happen not to occur for a while.
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Old 10-10-2016, 09:46 PM   #1373
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Anybody have any info on why CHSCM took a dive today?
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Old 10-10-2016, 10:19 PM   #1374
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Anybody have any info on why CHSCM took a dive today?


Maybe finally catching up to CHSCL's recent fall? They both are up about 6% on the year. Some preferreds especially the more liquid ones that appreciated alot are just giving up some of the mania buying gains from earlier in year. Some rate hike scare talk. My core issues have largely slept recently though I took advantage of some decent issues that prices sagged and bought and flipped.
I would like to get back into CHSCL or CHSCM but they both have to drop $1.50 more or so before I can feel comfortable about buying.
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Old 10-11-2016, 03:20 PM   #1375
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Anybody have any info on why CHSCM took a dive today?


Ok, Aja, from now on you have someone to cry with on future CHS losses... I reentered CHSCL at $28.20 today for 200 and also 200 of CHSCO at $28.80. I wanted 400 of O but it started heading back up and L kept going down so I bought L.
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Old 10-11-2016, 05:44 PM   #1376
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As the sabre rattling of rate hikes continues, I thought it a good time to do some comparisons of some of my preferreds I own pricing today versus the trough of the "Taper Tantrum" when 10 year treasury went to 3% a little over 2 years ago. The bottoming out largely occurred in January 2014. Pricing in parenthesis is the Taper price of these select issues I own... AILLL $26.30 ($24.75) AILNP $104 ($101.60) UBP-F $26.22 ($23.00) CHSCO $28.95 ($27.60) AHT-A $25.15 ($25.40) AES-C $51.06 ($50.25) Since AES-C goes exD tomm of 84 cents it is essentially unchanged from taper tantrum. As one can see above, that in the right issues, little price degradation will occur from a 10 year going from 1.6% to 3%... Not enough for me to worry about as the stream of divis will continue to flow and I will reinvest at higher yields.
The trouble one may have is owning ones with lower yields in 5% range. They may feel more pressure on pricing since they are closer in yield to safe treasuries. I do know as an example IPL-D which is a par 5.1% yield currently trading over $26. It went down to near $21 during TT. So one must be cognizant of this if capital loss is a concern. Many newer issued 5% plus and even high 4% perpetuals have went to market since TT. They have not been tested yet, and I suspect it may not be pretty if 10 year would return to 3%.
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Old 10-11-2016, 09:23 PM   #1377
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On CHS, the only relevant information is potential issues with China and perhaps there were some losses suffered in regards to the flooding from Hurricane Mathew, which would seem unlikely to me but I do not know of all of CHS facilities and storage locations, I know there is a major plant in Trinidad and Tobago for the new partnership they are in. CHS is in the first year of a new partnership in nitrogen fertilizers or Urea resulting in a doubling of long term debt to over 2 billion and about equal to the amount of preferred shares issued. i. This new segment has not been performing particularly well and perhaps there is some inside info that sales were less than anticipated. The overall financial position of CHS, while in no difficulty that I can see has deteriorated in the past year. Yet I am still confident in ongoing ability to maintain preferred dividends for years to come. There is also a nervousness in the preferred market overall concerning interest rates as the 5 year treasury has increased to 1.3% and that combined with financial may be enough to push nervous investors out.

In deciding which CHS issue to purchase the “M” issue does convert to variable rate up to 8 percent after 2024, depending on the 3 month Libor at the time plus 4.155 percent and at current price it’s Yield to Call is 5.21. So this issue is somewhat protected by interest rates beginning in 2024 and the variable factor of the security lowers the likelihood of a call in 2024 and so to me increases the true dividend yield.

Currently the O issue has a yield to call of 5.13 and the L is at 5.57 at closing price today. Targeting 27.4 on the L issue for a yield of 6 percent would be a good target for anticipation of future market weakness. For some reason their was concerted buying in the O issue which has made it the least attractive of the issues based on closing prices today.

Wells Fargo has continued to scare the bejesus out of preferred investors and at 1277 offers 5.87% interest, at 1250 you are back in the 6 percent range on this security and it seems doubtful to me that the government would want to take down the largest bank in the USA when it is supported by Warren Buffet, though nervousness will probably continue to grow up until the elections are held.

I am not capable of the catch and release nature of the more accomplished members of this esteemed group, am I happy to catch and put in the freezer to provide nutrition for the future but greatly admire the insights shared here.

Personally I continue to be unconcerned by interest rates and have more concern on a potential financial panic that could be initiated by a rise in interest rates by the Federal Reserve. Deutsche Bank is bankrupt, Japan as a country is bankrupt, but for now I am comfortable in holding what I own, if a panic were to evolve I know I will be looking to add preferred shares and not to sell the issues I hold. I found it interesting that in Theranos the only investors likely to see money are the individual investors who bought preferred shares in the company as the common is worthless.
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Old 10-11-2016, 09:46 PM   #1378
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RM, yes for me YTC is a meaningless number. I am usually long gone before that would ever occur. I look for current yield now which CHSCO offers the most now, but I hesitated buying the other 200 at $28.80 and price went back up to $28.95 so I bought sagging CHSCL.
Another reason why YTC means nothing to me is my biggest issue I own which is over a quarter of my stash is a NEGATIVE 60% annualized YTC. Yawn.... Its been that for three years running now.

Im thinking the CHS issues will stabilize soon. Im expecting most of my preferreds to drop a buck if rates rise some. I have avoided the losses so far and have inched forward even the past month by staying ahead of the posse with flips and holding issues that never trade. That helps alot too.
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Old 10-11-2016, 09:47 PM   #1379
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An excellent summary of CHS and the risks facing it, RM.

I would add that the Fertilizer Joint Venture was done after initial plans to build its own plant was scuttled by CHS Management; in fact one of the preferred issues - I believe it was CHSCL - was to finance this plant.

IMO, this was a wise decision, they were experiencing cost overruns even at the planning stage, with unexpected costs coming from railroad access, environmental studies, etc. Add to that, a decline in the price of Fertilizer and the entire agriculture sector softening, and they decided to bite the bullet, write off whatever they had spent, and go into the Joint Venture instead.


It remains to be seen whether the JV will make money, hopefully we will see improvement in the agriculture sector soon, and a brightening of the revenue picture for CHS.


I own the CHSCO & CHSCL series, and have no intention to sell. they are stable and sustainable income streams, and at over 6% yield, difficult to replace.

My own take, FWIW, is that Fed rate hike fears are behind much of the weakness in all Preferred stock at this time.
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Old 10-11-2016, 09:53 PM   #1380
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Running Man...

Wells is not the largest bank.... banks ranked by total assets...

Rank
Bank nameTotal assets1JPMorgan Chase & Co.$2.42 trillion2Bank of America Corp.$2.15 trillion3Citigroup Inc.$1.77 trillion4Wells Fargo & Co.$1.75 trillion5U.S. Bancorp$415.94 billion6Bank of New York Mellon Corp.$377.37 billion7PNC Financial Services Group Inc.$362.13 billion8Capital One Financial Corp.$313.7 billion9HSBC North American Holdings Inc.$291.61 billion10TD Bank U.S. Holding Co.$253.2 billion


Now, it used to be able to say it was largest by market cap, but not anymore... JPM passed it by... I also think the market cap is going to continue to go down since there are a lot of local gvmts saying they are going to stop doing business with them... but this will not show up for a year or two...
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